By CASSIE WERBER
LONDON -- Technology that traps and stores the carbon generated by burning fossil fuels could become cheaper and make it competitive with renewable technology, a UK government-sponsored report showed Thursday.
The Cost Reduction Task Force, which authored the report, found that carbon capture and storage technology could be a viable option for the UK government in meeting its carbon reduction targets.
The report estimated that CCS technology could generate electricity at a breakeven cost approaching GBP100 a megawatt hour by the early 2020s, and significantly below that thereafter.
The UK is aiming for an 80% reduction in its greenhouse gas emissions by 2050. To do this, it will need to replace much of the current power-generation fleet, which relies heavily on coal and gas, with nuclear, wind and other renewables.
CSS may be cost-effective as part of the mix if its price falls, the report says.
However, the report said there are several factors, including commitment from government, the building of CCS facilities and financing, that will have to be in place for CCS to become a viable option.
Dow Jones Newswires